DiGi returns excess cash to shareholders

Press Release
October 27, 2009

DiGi returns excess cash to shareholders
• Announces 75 sen special dividend
• Increases dividend commitment to 80%

SHAH ALAM, 28 OCTOBER 2009: DiGi.Com Berhad (DiGi) continues to deliver strong shareholder value by increasing its dividend commitment to a minimum 80% pay-out of its net income from 2010 in view of optimistic long-term financial prospects.

The Company also announced a special dividend of 75.0 sen single-tier exempt dividend per ordinary share for the financial year ending 31 December 2009, bringing the total payout year-to-date to RM1.24 per share.

Johan Dennelind, chief executive officer of DiGi commented, "DiGi is still charting growth with a strong operational cash flow and balance sheet. Returning excess cash is part of our effort to provide sustainable long term yields to our shareholders. Over the years, we have built a solid track record and remain committed to continue creating superior value for our shareholders."

DiGi today announced its third quarter financial results. It posted a quarter-on-quarter revenue growth of 3% to RM1.2 billion attributed to well-received segment offerings, in addition to the steady increase in the subscriber base over the current quarter. Profit before tax (PBT) was RM333.2 million compared to RM323.9 million in the immediate preceding quarter while profit after tax (PAT) rose by 4% to RM244.1 million from RM234.5 million recorded in the second quarter this year.

Commenting on the strong results, Dennelind said that DiGi is determined to deliver better results, "We are seeing positive indicators signaling an upward momentum from the relatively flat start this year. We have pushed the envelope on delivering quality services to our customers to ensure we capitalise on the progressive economic recovery."

DiGi is currently spending a significant portion of its total CAPEX, which is estimated at around RM700 million for the year, on rolling out its 3G mobile broadband network. Dennelind added, "Our future growth is in Internet and we will continue to invest to bring relevant and affordable internet to the people on Malaysia's newest Turbo 3G™ (14.4Mbps 3G/HSPA) network. With the introduction of DiGi Internet last week, we now have a complete 3G offering that will enable us to capture additional revenue streams arising from new subscribers as well as higher data usage."

For the nine-month period ended 30 September 2009, DiGi posted revenue growth of 2% to RM3.7 billion mainly contributed by steady demand for mobile services from an enlarged subscriber base of 7.4 million.

Year-to-date, PBT is RM1.0 billion compared to RM1.2 billion in the same period last year due to increased depreciation and amortisation expenses following the commencement of 3G spectrum amortisation in line with the commercial launch of 3G mobile broadband services in the first quarter of 2009 as well as higher finance costs related to additional borrowings drawn down and issued. PAT lowered to RM754.0 million with earnings per share (EPS) of 97.0 sen for the financial period ended 30 September 2009.

With an operating cash flow of RM1.1 billion as of third quarter 2009, DiGi is on track to achieving its operating cash flow guidance of similar to, or better than, that of 2008.


About DiGi
Established in 1995, DiGi is listed on Bursa Malaysia and is part of the global telecommunications provider, Telenor Group. It is the first telco to operate a fully digital mobile network in Malaysia. DiGi focuses on making it easy, keeping it relevant and providing the best deals to ensure excellent customer experience in mobile and broadband. Through its corporate initiative, Deep Green, DiGi is committed to a sustainable business that is financially and ecologically responsible to all stakeholders.

Issued by:
Corporate Communications Department.